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Accounting: Income statement

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The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for the shop are $30,000 a year. Depreciation on the repair tools will be $10,000. Prepare an income statement for the shop based on these estimates. The tax rate is 35 percent.

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The problem deals with preparing the income statement from provided information.

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QUESTION: CALCULATING NET INCOME
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for the shop are $30,000 a year. Depreciation on the ...

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  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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